| As the economy slows and all businesses look to | | | | interest in the other business prospering. |
| conserve cash, bartering will help you increase | | | | Sometimes, especially when the businesses are |
| sales, reduce costs, improve cash flow and | | | | complementary, the business relationship turns out |
| drastically boost your profits. It will give you the | | | | to be an even bigger asset than the cash savings |
| advantage you need to maximize your profitability | | | | from bartering. When you barter services, you |
| and retain your competitive edge. Most small | | | | also create new business contacts and |
| business owners completely overlook the concept | | | | references. You have more to gain than just new |
| of bartering-and its value.It does not matter what | | | | customers, once you've bartered successfully |
| business or profession you are in, you have the | | | | with another business owner, you open yourself |
| ability to generate finished goods or services that | | | | up to a new business relationship that can help |
| cost less than their market value. For example, if | | | | your company grow for years to come. It builds |
| you are a manufacturer of sofas, a sofa may sell | | | | a whole different kind of a dynamic. |
| for $4,000, but your real cost may only be $400. | | | | We all like to barter. It's a great way to increase |
| If you are a stylist and you do makeovers, your | | | | sales and improve cash flow. Problem is, |
| services may have a market value of $3,000, but | | | | sometimes, we may not be able to find suitable |
| it may cost you $300 in incremental cost. | | | | businesses that want to barter with us or we |
| Bartering occurs when you exchange goods or | | | | don't want what others have to offer. Bartering |
| services without exchanging money. If you ran | | | | online makes it easy to approach companies that |
| $3,000 worth of advertising in a magazine, you | | | | you may not have thought of doing business with. |
| would have to write a check for $3,000. But if | | | | Joining an online barter club is a smart and simple |
| you can convince the magazine to be paid with | | | | way to find business owners willing to barter for |
| your products or services, you would have cut | | | | goods or services you require. Hundreds of barter |
| your acquisition cost of advertising for the | | | | exchange groups operate worldwide, offering an |
| markups of your products or services. So, if | | | | efficient channel to barter for small businesses. |
| you're the stylist I alluded to earlier who sells the | | | | Barter exchanges allow companies to have |
| $300 makeover for $3,000, the markup is 10 | | | | access to more goods and services in a quicker |
| times. In reality, you bought the advertising for | | | | fashion. Some companies deal with barter |
| $400, not $4,000. Bartering may be the simple | | | | currency, others charge membership or |
| reason your competitors are buying more | | | | transaction fees and some provide their service |
| advertising than you and outselling your business. | | | | at no cost. is a free membership site created for |
| By turning your excess inventory or services into | | | | small businesses worldwide. |
| print, TV, or other forms of media, your | | | | Bartering is not limited to any specific product or |
| company can maximize marketing and improve its | | | | service. Business owners are always looking for |
| bottom line. | | | | ways to lower expenses. Bartering allows you to |
| One unexpected added benefit of bartering is the | | | | build your profit into your expense and conserve |
| relationship that is built between small businesses. | | | | cash flow. It's one more tool used to increase the |
| This can be a basic strategic partnership. The | | | | chances of your company's success. |
| bartering relationship promotes trust, support, and | | | | |